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2025-09-16 16:05:25
[Bank of Korea Meeting Minutes: Majority Supports Future Policy Easing to Address Growth Headwinds] ⑴ The minutes of the Bank of Korea's meeting show that a majority of Monetary Policy Committee members believe further interest rate cuts are needed to counter the impact of US tariffs on economic growth. ⑵ The August 28 meeting voted 6-1 to keep the benchmark interest rate unchanged at 2.50%, in line with expectations. ⑶ Member Shin Sung-hwan (the only vote in favor of a 25 basis point rate cut) stated, "As the impact of tariff policies becomes apparent by year-end, economic growth is expected to gradually slow." ⑷ South Korea is weighing trade concessions, proposing to cap US import tariffs at 15%, but negotiations have stalled due to unfinished details of a $350 billion investment fund. ⑸ A majority of members believe that interest rate cuts are needed in the coming months to support economic growth, which is "significantly below potential." ⑹ The central bank raised its economic growth forecast for this year from 0.8% to 0.9%, still the lowest growth rate since 2020.
